New DoorDash data shows city retailers losing $7 million in revenue, app-based delivery workers waiting three times longer for orders three months into the city’s extreme new ordinance
SEATTLE (April 24, 2024) – New data shows Seattle merchants are losing out on millions in revenue and app-based workers are missing out on potential earnings under the city’s extreme new Delivery Pay Ordinance.
In a new post published Tuesday, DoorDash finds that city retailers lost more than $7 million in revenue through the DoorDash marketplace in the six weeks after the law took effect. The company estimates that over the course of one year, merchants could earn $40 million less than expected.
By that same token, app-based delivery workers are also missing out on greater earning opportunities, the company reported. In February and March, Seattle consumers placed approximately 300,000 fewer orders through DoorDash, according to the post. Over the course of the year, DoorDash projects a loss of more than 1.7 million orders, representing a significant loss in earning opportunities for the city’s delivery workers.
Earlier this year, other app-based delivery companies like UberEats and Grubhub also posted data indicating the ordinance’s impacts on retail revenue and earning opportunities for app-based workers in Seattle.
“These numbers are tough to ignore, and paint a fuller picture of the unintended consequences that have resulted from implementing such an aggressive, untested new ordinance,” said Renée Sunde, President/CEO of the Washington Retail Association. “Over time, this stands to have a stunning economic impact on Seattle retailers, their customers and the app-based workers this new law was supposed to help. We are encouraging the new City Council to take this data to heart as they consider a fix to the ordinance. These losses are simply unsustainable for retailers of all sizes, but especially smaller businesses.”
Marcos Wanless, Founder and CEO, Seattle Latino Chamber of Commerce, said the data puts a finer point on the impacts of the new law for Seattle’s retailers and delivery workers alike.
“We warned the council this would harm retailers and workers, and now we have clear data proving this has come to fruition. Bear in mind this reflects data from just one app-based delivery company – others are likely in a similar spot. So we are potentially looking at multi-million dollar losses this year if the trend continues,” said Wanless.
“The council has an opportunity this spring to get things back on track by making changes to the ordinance. My members, especially those in the restaurant business, can’t wait much longer,” he added. “We need to fix the Delivery Pay Ordinance, and we need to do it soon.”
Tammie Hetrick, president and CEO of the Washington Food Industry Association, said the new data reaffirms the need for the council to act on the ordinance quickly.
“This represents another hit to my members – small, family-owned grocers and convenience stores – that can’t compete with large retailers. They offer delivery as a way to meet their customers’ needs,” said Hetrick. “This data is hard to ignore – it really lays bare the impact of implementing a new law without playing out the impacts to businesses, customers and workers. I will be urging the council to take this up and to fix the ordinance for everyone’s benefit.”
A proposed change to the ordinance is expected to be introduced Thursday at the Governance, Accountability & Economic Development Committee.
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About the WA Alliance for Innovation and Independent Work
WA Alliance for Innovation and Independent Work is a coalition of consumers, independent workers, small businesses, app-based services, and community leaders from across the state that seeks to strengthen and support advancements in the new workplace. Today, flexible jobs, benefits, and innovative services are essential to enhancing Washington’s emerging economic opportunities and empowering the small businesses and workers who are leading and innovating.